Wells Fargo: U.S. CPI data expected to reflect stalled anti-inflation progress in November

Sarah House, Managing Director and Senior Economist at Wells Fargo, and Aubrey Woessner, Economic Analyst, said that the U.S. November CPI may show that anti-inflation progress is stalling. The unquarterly CPI annual rate is expected to rise from 2.6% to 2.7%. They believe that the unquarterly core CPI annual rate will stay in a narrow range of 3.2% -3.3% for the sixth consecutive month. Although some inflation factors such as the overheated labor market continue to fade, new headwinds have emerged that are not conducive to inflation falling back, including the possibility of imposing tariffs and tax cuts. The U.S. November CPI report is scheduled to be released next Wednesday, one week before the Federal Reserve's interest rate decision. At present, the futures market is digesting the Federal Reserve's decision to cut interest rates by 25 basis points.